Vallourec VK.PA
FranceBasic Materials · SteelEuronext París · EUR
25.91 EUR (+44.6%)
11 analysts
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Vallourec is a French manufacturer of seamless steel tubes, a world leader in tubular solutions for the energy sector (oil and gas exploration and production), as well as for industrial and petrochemical applications.
Listed on Euronext París · Symbol VK.PA · EPA: VK · Currency EUR
Key points
from its scores- ✓Attractive valuation8.3
- ✓Very solid balance sheet7.9
- ✓Favourable backdrop7.4
- ✕Poor share-price trend2.4
AI analysis
bottom line, main risk, context and newsValuation and balance sheet are solid, but the cyclical nature of the business and uncertainty about the sustainability of earnings growth and the dividend warrant caution.
Vallourec shows solid financial health (net cash, Net Debt/EBITDA of -0.18) and an attractive valuation (P/E 13.18, FCF yield 10.60%), but its business is cyclical and the high earnings growth (30.20%) may not be sustainable. Momentum is weak (score 2.4) and the dividend, although profitable (8.37%), is not covered by earnings (payout 0%).
The main risk is the high dependence on the investment cycle in oil and gas exploration and production, especially in the US, making its results highly sensitive to crude oil volatility and changes in its clients' capital expenditure.
Context and risks
Vallourec is a French manufacturer of seamless steel tubes, with strong exposure to the oil and gas exploration and production sector in the US (its largest market). Volatility in crude oil and the possibility that the geopolitical risk premium deflates (for example, due to a reopening of the Strait of Hormuz) could affect demand and prices for its products. Furthermore, its business is cyclical and subject to the evolution of US tariffs on steel, a regulatory framework that is currently fragile and litigious.
Is Vallourec stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 36% below the Basic Materials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 13.2 | 19.2 | −31% |
| EV / EBITDA | 5.9 | 10.0 | −41% |
| Price / book | 2.3 | 2.3 | +3% |
| Price / sales | 1.3 | 2.2 | −42% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.3 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 25.91 EUR, +44.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.9 (sector 7.1), Growth 6.0 (sector 6.8).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- P/E
- 13.2
- Forward P/E
- 9.1
- EV / EBITDA
- 5.9
- Price / book
- 2.3
- Price / sales
- 1.3
- PEG
- 7.24
- Market cap
- 4.8B EUR
- Enterprise value
- 5.2B USD
Profitability
- ROE
- 15.8%
- ROA
- 7.5%
- ROIC (approx.)
- 17.6%
- Gross margin
- 29.7%
- Operating margin
- 14.2%
- Net margin
- 9.6%
- Free cash flow
- 567.1M USD
- FCF yield
- 10.6%
- Cash conversion
- 64%
Solvency
- Total debt
- 1.1B USD
- Net debt
- −157.6M USD
- Cash
- 1.2B USD
- EBITDA
- 882.8M USD
- Net debt / EBITDA
- −0.18
- Debt / equity
- 36.40
- Current ratio
- 2.13
- Quick ratio
- 1.16
Growth
- Revenue growth
- +2.6%
- Earnings growth
- +30.2%
- EPS (TTM)
- 1.36 EUR
- EPS (forward)
- 1.98 EUR
Dividend
- Dividend yield
- 8.4%
- Payout
- 0.0%
Risk and market
- Beta
- 0.41
- Analyst consensus
- Buy (11)
- Target price
- 25.91 EUR
- 52-week range
- 15.07 – 27.67
Recent news
All VK.PA news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Vallourec
Is Vallourec stock cheap or expensive?
On P/E and EV / EBITDA, it trades 36% below the Basic Materials median on average. Valuation score: 8.3 out of 10 (median for Basic Materials: 5.8). Average analyst target: 25.91 EUR, +44.6% versus the price. This is not investment advice.
What score does Vallourec get on MeridIAn Screener?
It scores 6.8 out of 10, rank 357 of 2,130 (better than 83% of the companies analysed). Its strongest category is Valuation (8.3) and its weakest, Momentum (2.4). Analysis of 08/10/2026.
What is Vallourec's P/E ratio?
Its P/E is 13.2: the share price equals 13.2 times earnings per share over the last 12 months. The Basic Materials median is 19.2. Based on the earnings analysts expect, the forward P/E is 9.1.
How much is Vallourec worth on the stock market?
Its market capitalisation is 4.8B EUR and its enterprise value, debt included, is 5.2B EUR.
How much debt does Vallourec have?
It has more cash than debt: net cash of 157.6M USD.
Does Vallourec pay a dividend?
Yes: its dividend yield is 8.37%.
How has Vallourec stock performed over the last year?
It has risen 10.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 15.07 and 27.67 EUR. Past performance does not guarantee future results.
What do analysts think of Vallourec?
11 analysts cover it; their average recommendation is “Buy” and their average target is 25.91 EUR (+44.6% versus the price). It is an estimate, not market data.